I'm not intimately familiar with the situation nor their org structure(though I recently spoke with one of their directors in NY, and it was a pleasant experience -- it may bias my comment), so this is just speculation: I am guessing a large portion of these layoffs are of temp, hourly employees. My first reaction to the title was more of a "uh oh," but now I am thinking it's more of "they closed their positions with their temps, and they are relocating their permanent employees to NY." Is that so bad? Did it come as such a surprise to their temps? I could be wrong, however....